MNEs engagement with environmental sustainability in an emerging economy: Do dynamic capabilities and entrepreneurial orientation matter?

Abstract

In this study, we investigate the link between multinational enterprises’ (MNEs) dynamic capabilities (DC) and their environmental collaboration with suppliers mediated by entrepreneurial orientation (EO) and moderated by environmental complexity. Drawing on responses from 249 managers of MNEs in Türkiye, we find that DC improve environmental collaboration with suppliers. Moreover, we posit that through EO, MNEs achieves greater environmental collaboration with suppliers for effective environmental solutions, especially at a low level of environmental complexity. The results enrich the role of organizational capabilities in strengthening environmental collaboration with suppliers to achieve environmental sustainability, and provide suggestions for managers and policymakers to better understand capabilities for the purpose of attaining sustainability.